Flipkart Consistently Nudging Ahead of Amazon In Terms of Growth!

Must Read

Zomato Sets Eyes On $10.2 Billion Online Grocery Delivery Market in India

The 21-day nationwide lockdown imposed in India due to the Covid-19 outbreak fueled a massive change in...

Billionaire Mark Cuban’s Invaluable Advice for Startups in Crisis!

In an interview with CNBC last week, owner of NBA’s Dallas Mavericks, Mark Cuban, spoke out about...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the...

Seems like Walmart’s acquisition of Flipkart is walking down the “high on the hog” street!

Flipkart, which owns the fashion retailers, Myntra and Jabong, is inching closer towards the lofty perch of the market leader while Amazon.com Inc. (NASDAQ:AMZN) lags behind. This hints towards the fact that Flipkart might be gaining market share, and also at a faster pace, over its main rival, Amazon India.

Flipkart Sales Growth In India

In consonance with people familiar with the matter, gross sales at Flipkart witnessed an upsurge of roughly 50% starting from this year, accountable to the end of Q2, 2018. On one hand, where Flipkart could cave-in an increase of 50%, Amazon India, on the other hand, rounded up the gross sales with an increase of 35-40%.

Advertisements

India’s online retail market is estimated to be worth $32.7 billion, by the end of 2018.  Apparently, this indicates that the eCommerce will account for just 2.9% of India’s retail market as a whole in 2018. Now, considering the recent turn of events, with the world’s largest e-commerce acquisition being announced in India, the healthy rivalry between the eCommerce players is yet to make an about-face!

Flipkart vs Amazon: The Market Leader Seesaw!

Flipkart claims that, even on a standalone basis, it steers way ahead of Amazon. However, Amazon India Chief, Amit Agarwal piques the Indian eCommerce firm by claiming that the company stands ahead of Flipkart, in terms of Gross Merchandise Value (GMV) as well as Net Sales.

Agarwal even said that Amazon was certainly the leaders across all metrics.

There’s no denying in the fact that both Flipkart and Amazon have been jockeying up for the top honcho position. Additionally, an adage as true as possible, ‘Numbers really don’t lie.” Both the companies, irrespective of their at-odds-relationship, continue growing faster than the e-commerce market.

Flipkart sales have seen a boost, towards earlier October and can be accredited to the primary demand of smartphones increasing. However, according to numerous logistics experts, market research companies and firm analysts, Flipkart continues to finish in front of Amazon by a thin gap of margin. Flipkart has made its business go in their favour under the guidance of Chief Executive Officer (CEO) Kalyan Krishnamurthy.

Advertisements

With Krishnamurthy, Flipkart has been consistent in caving in smartphone deals with well known, celebrated brands like Motorola, Xiaomi and others. As a matter of fact, 60% to 65% of Flipkart’s Gross sales were driven by Smartphones.

However, taking the Jeff Bezos owned – Amazon – the company has its largest product category under smartphone, but the distribution of products is even. Unlike Flipkart which has a concentrated sales layer around smartphones, Amazon India maintains its sales significantly in smaller categories such as books, groceries and electronic accessories. Herein, there’s a clear notion of the vast difference in their strategic alignment.

Despite Competition, Indian eCommerce has Slowed Down!

Over the last couple of years, the Indian e-commerce market has seen a clear deceleration which can be accredited to many direct or indirect factors. Be it regulatory actions like revised guidelines for foreign direct investment (FDI), demonetization or the new goods and services tax regime; these factors have led to the decline in consumer spending.

India’s eCommerce market is witnessing a two-pronged fight between Jeff Bezos-led Amazon and Walmart-backed Flipkart.

For the record, Amazon had outpaced Flipkart’s growth rate in the financial year 2017. However, according to a report by Praxis Global Alliance, this home-grown, Indian online marketplace remains India’s largest.

Additionally, if sources are to be trusted, Amazon has planned to create the biggest war chest against Flipkart. Amazon is investing $27 billion in India ahead of Walmart closing the acquisition of Flipkart.

Looks like with the backing of Walmart Flipkart is on a level playing field with Amazon now. Consumers can expect raining discounts during the upcoming festival season as neither Amazon nor Flipkart seems to be in the mood to leave any stone unturned in a bid to capture the market.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook Messenger Desktop App: The Rise Of Zoom Has Caught The Attention Of Zuckerberg?

Facebook Messenger Desktop app is making waves, and all because of an unexpected and sudden rise of...

A New Coronavirus Scam Is So Lucrative That People Are Falling Prey To Scammers Easily!

Fraudsters are out once again to steal your money and this time they are banking on a new Coronavirus scam.

What Businesses Need to Know About the Instagram Algorithm in 2020

Every social media platform, whether it’s Facebook or Instagram, is driven by an algorithm that controls the content exposure. This is the...

GRE And TOEFL Exams Now Will Be Undertaken From Home: Will Covid-19 Redefine Education Sector?

The sudden outbreak of the deadly pandemic Covid-19 has forced the existing education systems around the world to now rely on digital...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the entire job market in India....

India Is Losing $4.6 Billion Due To Lockdown Every Day [REPORT]

The amount of havoc the Covid-19 outbreak and all the measures that have been imposed in place to curb it wreaked on...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This